New HMA board reassessing proposed sale to Community Health Systems

NAPLES - Naples-based hospital operator Health Management Associates said Wednesday its new board of directors is reviewing the planned $3.9 billion sale of HMA to Community Health Systems.

HMA said its board has retained Lazard and UBS as independent advisers and engaged legal and financial counsel to help as part of the review. It said Community Health Systems agreed to those moves.

Health Management runs 71 hospitals in 15 states, including Physicians Regional hospitals on Pine Ridge Road and Collier Boulevard in Collier County and a hospital in Lehigh Acres in Lee County.

Community Health Systems Inc., which is based in Franklin, Tenn., agreed to buy HMA in late July for $13.78 per share. The acquisition would create a large U.S. hospital chain just as the federal health care overhaul starts adding millions of newly insured people to the health care system.

About two weeks after the deal was announced, HMA shareholders agreed to replace all eight members of the board. The move had been proposed in June — before the buyout deal was announced — by Glenview Capital Management, HMA's largest shareholder.

Community Health Systems has said it could pay another $1 per share for HMA depending on how some government investigations play out.

HMA has received subpoenas from the U.S. Department of Health and Human Services regarding physician relationships and some emergency-room operations. The Securities and Exhange Commission also is looking at HMA, according to company filings and statements.

The Community Health Systems and HMA deal is expected to close by the end of March pending approval by regulators and HMA shareholders.

Shares of HMA have lost about 15 percent of their value since the sale was announced. Its shares slipped 13 cents Wednesday to close at $12.68.